Improving Corporate Responsibility Competitiveness
To Promote Harmonius Society
Speech at China-EU CSR International Forum by
Mr. YI Xiaozhun
Assistant Minister
Ministry of Commerce, P. R. China
Honorable Commissioner Vladimir Spidla,
Ladies and Gentlemen,
Good Morning!
I am very delighted to participate in the China-EU CSR International Forum jointly organized by WTO Tribune and CSR Europe in association with China Institute of Industrial Relations and Institute of the Chinese Economy and WTO Studies of Peking University.
Having set “Corporate Responsibility Competitiveness and Harmonious Society” as its theme, this Forum will explore the approaches by which China builds up its CSR system and the competitiveness of corporate responsibility, discuss optimal structures of harmonious society, and present the Beijing Declaration on Promoting Corporate Social Responsibility in China. It is therefore of great significance.
May I share with you four points on the relationship of improved corporate responsibility competitiveness and a more harmonious society in China.
I. Performing CSR is an important task of China’s companies.
In this modern society, people have increasingly realized that the pursuit of only economic interests is far from enough for a company. Rather, companies shall assume much broader social and environmental responsibilities.
Nowadays, CSR requirements of developed countries have already been forwarded to many Chinese companies through the supply chains of multinational corporations and the competition of supply chains.CSR is a new challenge confronted by Chinese companies in their bid to participate in global competition and share world market. For Chinese companies, CSR is also a protracted, arduous journey of exploration. Due to low CSR awareness among Chinese companies, it will take a considerably long period to put growing CSR system well on track of public administration in China. Besides, CSR practice itself will be a longstanding process of experiements.
Performing social responsibility is necessary for Chinese companies to implement Scientific Development Initiative.
After going through Experience Management, Scientific Management and Behavior Management, corporate management has now evolved into the Culture Management phase where “human first”is the trend. CSR includes corporate responsibilities to employees, consumers, offsprings, environment and society, which is a classic reflection of “human first”trend.
Therefore, Chinese companies must move towards higher CSR awareness and a sound CSR system as these represent a critical pass of corporate transformation and upgrading. The Scientific Development Initiative was put forward in the 3rd Plenary Session of the 16th Central Committee of the Communist Party of China, which starts from and rests upon the concept of Human First. It is thus fair to say that the fundamental spirit of CSR is in line with Scientific Development Initiative. To reinforce CSR concept in China goes with the trend of corporate management at home and abroad. It will be not only an advanced cultural concept, but also a concrete action taken by Chinese companies to implement the political aspiration of the new CPC collective leadership, i.e. “Human First, Harmonious Society”.
Performing Social Responsibiity is necessary for companies to achieve sustainable development.
To achieve sustainable development, a company must closely monitor all elements of its re-production, including people, resources offered by the environment, technologies and services provided by the society, etc. These are the very elements on which CSR calls for attention.
Paying attention to social responsibility equals to attention on all elements necessary for corporate reproduction, which in turn guarantees the sustainable development of companies. It can be paraphrased as follows. Making investment in performing CSR might affect the maximization of corporate profit in the short run, it will nonetheless guarantee the longterm profitability of companies. Profit maximization is a dialectic question. A company can only maximize its profit by pursuing reasonable profit.
II. Improving Corporate Responsibility Competitiveness to Promote Harmonius Society
Last year, the CPC Central Committee put forward Scientific Development Inititive. This year, the Central Conference on Economic Work listed “Human First: Endeavor to build up a socialist harmonius society” as a key agenda of the Chinese government.
Building up a harmonious society is a common task of all organizations and people at all levels of the society. Companies of wahtever nature and catogry shall perform their social responsibilities and make due contribution to the creation of a harmonious society because they are important social organizations. On the way to a harmonious society, companies play an irreplacable and fundamental role.
CSR requires companies to go beyond the traditional mindset of profit is the only objective. It emphasizes care for the value of human beings in the reproduction process and corporate contribution to consumers, environment and society.The first layer of CSR may be called social responsibilities which include economic and legal responsibilities, something that companies must perform. The second layer may be called social responsibilities which comprise moral and philanthropic obligations,something that the society expects companies to perform or companies perform on a voluntary basis. The term Improving Corporate Responsibility Competitiveness means that we should improve corporate capability in performing their economic, legal, moral and philanthropic responsibilities.
As wealth creators of the society, companies perform economic responsibilities with the direct effect of promoting physical and cultural prosperity of the society, creating physical foundation essential to social stability and development, and shaping the cornerstone of a harmonious society.
Performing legal responsibilities means that companies do business within the legal framework of the society. They shall abide by all laws and regulations including Environmental Protection Law, Consumers Rights and Interest Law and Labor Protection Law, and urge their employees and communities to observe rules and regulations. Efforts in this regard will benefit the formation of a society featured by democracy and rule of law, as well as equity and justice.
Moral responsibilities are social expectations on companies. Companies perform their moral responsibilities by upholding honesty, honoring commitments and protecting ecological environment. These endeavor will undoubtedly lead to a social atmosphere of integrity and friendship and promote the beautiful scenario of man and nature co-existing harmoniously.
Using advantage in capital to perform philanthropic responsibilities, companies can push forward social progress and nurture a dynamic, orderly society.
III. The Chinese government attaches great importance to CSR.
In the past few years, Chinese economy grew rapidly and companies in China secured remarkable progress in CSR which is summed up as follows.
Government at the central and local levels attaches increasing importance to CSR. In short, CSR does not come into being purely because of individual awakening of entrepreneurs. It also requires advocacy and promotion by the government. Over the years, government at all levels in China have stepped up CSR publicity campaign so that the entire society will pay attention to and become involved in this process. At the same time, the government has also reinforced supervision over CSR by making regular assessment on law-observance status of companies. According to the results of such assessment, authorities award prizes and compliment those who perform CSR in real earnest, and reprimand or punish those who severely viloate Labor Protection Law, Production Safety Law and Environmental Protection Law, etc. These efforts could therefore guide companies to change their mindset and move towards performing CSR in an active way.
We have seen the emergence of a group of companies taking social responsibilities as their inherent duties. Alongside the racing growth of Chinese economy, a fairly large number of Chinese companies have completed original accumulation. Some even have the advantage of scale as to further grow. Their development constituted an important part of the taking-off of Chinese economy. More importantly, a group of excellent companies, by their concrete actions, tell us how should a really successful company influence our social life, assume social responsibilities and become a corporate citizen that fulfils its post with credit in the market economy society.
IV. Reinforcing international exchanges and cooperation to jointly explore approaches by which Chinese companies implement social responsibilities.
Despite the impressive progress, we are by and large at the starting stage of CSR. We need to further explore relevant concepts and systems that accomodate the realities of Chinese society and confrom to the law of development of human civilization.
Following a decade of endeavor, European companies have accumulated rich experience in social responsibilities. Many companies have effectively explored the ways by which CSR is integrated into corporate strategy, organizational structure and daily operations, which are important reference as we promote CSR concept and system. In different countries, CSR might differ in terms of form or system. Nevertheless, the spirit and essence remain the same, i.e. to promote the civilization and progress of human society.Therefore, it is crucial to reinforce international exchanges and cooperation to jointly explore approaches by which Chinese companies implement social responsibilities.
The China-EU CSR International Forum brings together a group of elite companies from home and abroad who have made remarkable achievements in CSR. In addition, it has also invited Chinese and foreign experts and scholars in this regard. I believe that with intensive exchanges and cooperation in the coming two days, this Forum will help us identify viable CSR approaches in China, improve CSR competitiveness of Chinese companies and promote the creation of a harmonious society.
Finally, may I wish this Forum a complete success!
Thank you all!
（英文译稿，未经审阅）
